The broader cryptocurrency market is showing a notable rebound from the Dec 01 selloff as the prices of both Bitcoin (BTC) and Ethereum (ETH) trade in green with impressive 6% and 8% gains over the last 24 hours. This recovery has allowed several altcoins to bounce back, including Avalanche (AVAX).
AVAX is up nearly 7% today, and more importantly, the chart is now showcasing a classic bullish formation that could support a strong upside continuation.
Double Bottom Pattern in Play
On the 4H chart, AVAX is forming a clean double bottom pattern — a well-recognized bullish reversal structure that typically appears after a prolonged downtrend and signals the possibility of a trend shift.
The first bottom formed when the price dropped into the $12.60 region, followed by a solid rebound toward the neckline resistance around $15.27. However, the token faced rejection at that level and corrected back down, retesting the same $12.60 support zone.
This second tap confirmed the base of the structure, and buyers quickly stepped in, pushing the price to its current level around $13.87. The buying pressure at the second bottom suggests that bulls are defending this support with confidence.
What’s Next for AVAX?
If the double bottom pattern continues to unfold as expected, the next crucial step is a breakout above the neckline at $15.27. A decisive close above this level — ideally accompanied by a noticeable increase in trading volume — would validate the reversal pattern.
Once confirmed, the structure points toward a technical target near $17.94, which represents an upside of roughly 29% from the current price and aligns perfectly with the broader market’s improving sentiment.
For now, AVAX’s market structure looks constructive. Reclaiming the 200-MA at $15.57 on the 4H chart would add further strength to the bullish outlook, giving traders additional confidence as they watch for a potential breakout.